Challenges faced by franchise entrepreneurs operating in a volatile business environment: a case of the fast food industry in Harare, Zimbabwe
-
Received February 2, 2017;Accepted May 15, 2017;Published September 1, 2017
- Author(s)
-
DOIhttp://dx.doi.org/10.21511/ppm.15(2-2).2017.12
-
Article InfoVolume 15 2017, Issue #2 (cont. 2), pp. 436-444
- TO CITE АНОТАЦІЯ
-
Cited by5 articlesJournal title: Cogent Business & ManagementArticle title: Evaluating the impact of service encounter incivility on employee job stress, turnover intentions and labor attrition: a study on frontline employees in the fast food service industryDOI: 10.1080/23311975.2024.2355671Volume: 11 / Issue: 1 / First page: / Year: 2024Contributors: Phillip Dangaiso, Paul MukuchaJournal title: Corporate Governance and Organizational Behavior ReviewArticle title: Urbanisation and SME growth in a developing economy: Implications for policyDOI: 10.22495/cgobrv6i2p12Volume: 6 / Issue: 2 / First page: 123 / Year: 2022Contributors: Mapeto Bomani, Evelyn Derera, Mugove MashingaidzeJournal title:Article title:DOI:Volume: / Issue: / First page: / Year:Contributors:Journal title: African Journal of Economics and Sustainable DevelopmentArticle title: Leveraging Small Business Development Through Employment Contracts: The Mediation Effect of Job InsecurityDOI: 10.52589/AJESD-E2WW2UHCVolume: 6 / Issue: 3 / First page: 129 / Year: 2023Contributors: Ndlovu N., Vakira E., Mutanda B.Journal title: Current PsychologyArticle title: Antecedents and consequences of franchisee interaction in a food service settingDOI: 10.1007/s12144-024-06019-zVolume: 43 / Issue: 27 / First page: 22820 / Year: 2024Contributors: Liu Ting, Jiseon Ahn
- 2139 Views
-
1143 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
Franchising plays a pivotal role in sustainable economic development through employment creation, improving the standards of living and increasing the growth of entrepreneurship worldwide. However, the volatile business environment in Zimbabwe has a negative impact on the growth of franchising in the fast food industry. The aim of the study was to uncover the challenges of franchising in a volatile business environment in Zimbabwe. The study focused on an under studied area of franchising in the fast food industry of Zimbabwe. The study is important, as franchising can be used as a tool for economic growth and the study breaks a new ground, as no similar studies have been conducted to identify the challenges faced by franchise entrepreneurs in a volatile business environment. Ten qualitative interviews were successfully conducted with franchise entrepreneurs using face to face semi structured interviews as data collection method and thematic coding was used to analyze the collected data. The findings of the study indicate that franchise entrepreneurs face difficulties in obtaining operating licences from the Harare’s City Municipal Authorities and registering their businesses. Electricity power cuts severely affect the operations of fast food businesses. The majority of the entrepreneurs do not have adequate capital to expand and grow their businesses and they fail to meet lending requirements from the financial institutions, top-most among them being the provision of collateral security accompanied by rigid application procedures for funding. Recommendations made include that the government must play an active role in promoting franchising by setting up a vibrant franchise board and speeding up the business registration process.
- Keywords
-
JEL Classification (Paper profile tab)L14, L81, L26
-
References38
-
Tables0
-
Figures0
-
- Bates, B., Botha, M., Botha, S., Goodman, S., Ladzani, W., Vries, C., & Vries, L. De. (2005). Business Management. Fresh Perspectives. Cape Town: Clyson Printers.
- Berger, S. (2008). Zimbabwean Inflation Rate hits 231 million per cent. The Telegraph. 09 October 2008.
- Chimhangwa, K. (2014). Fast foods outlets face stiff competition. The Standard. 26 January 2014.
- Conrad. (2015). Corruption: A cancer eating into Zimbabwe. The Herald. 19 February 2015.
- Daniels, L., & Ngwira, A. (1993). Results of a Nation-Wide survey on Micro, Small and Medium Scale Enterprises in Malawi. GEMINI Technical Report No 53. PACT Publications, New York.
- De Beer, A. (2008). What is Business Management? In Nieuwenhuizen, C, and Rossouw, D., Business Management a contemporary approach. Cape Town. Juta and Company.
- Gangata, K., & Matavire, E. H. M. (2013). Challenges facing SMEs in accessing finance from financial institutions: The case of Bulawayo, Zimbabwe. International Journal of Applied Research and Studies, 2(7).
- Gombarume, F. B., & Mavhundutse, S. (2012). Challenges Faced by Small to Medium Scale Enterprise. A Case Study of Chitungwiza, Zimbabwe. Greener Journal of Business and Management Studies, 4(4), 103-107.
- Innscor. (2013). Annual Report 2013.
- Innscor. (2007). Annual Report 2007.
- Karombo, T. (2013). Ching Ching for Nando’s, Chicken Inn. BIZCOMUUNITY.com Daily Industry News.
- Laiton, C. (2014). The birth of corruption in Zimbabwe. Newsday.
- Liutu, R. (2010). Subway Market Research. A Thesis Submitted in partial fulfilment of the requirements of Saimma University of Applied Sciences for the requirements of the Degree of Business Administration Bachelor’s Thesis.
- Louw, L., & Venter, P. (2013). Strategic Management. Developing Sustainability in Southern Africa. New York: Oxford University Press.
- Makichi, T. (2014). Zim’s labor costs too high, says Chinamasa. Chronicle.
- Manayiti, O., Nyoni, M., & Dube, B. (2015) Massive Zim job losses in wake of court ruling. Mail and Guardian.
- Mandizha, T. (2015). Harare council to expedite business licensing. Newsday.
- Mangizvo, V. R., & Kapungu, N. (2010). Urban Domestic Water Crisis in Zimbabwe. The Case of Kadoma City. Journal of Sustainable Development in Africa, 12(8), 254-263.
- Mangudhla, T. (2012). Innscor faces stiff competition. Zimbabwean Independent.
- Mbanje, P. (2014). Harare: The Sunshine City that lost the wow, the lustre and the vibe. The Standard.
- Mboweni-De Klerk, R. C. M. (2008). Children’s preference on fast foods. Dissertation submitted in partial fulfilment of the requirements for the degree of Master of Commerce in Business Management. Unpublished thesis at University of Johannesburg.
- McCrea, B., & Pinchuck, T. (2000). The Rough Guide to Zimbabwe.
- Mhlanga, F. (2015). Water Shortages: Light at the end of the tunnel for Harare residents. Zimbabwean Independent.
- Mhlanga, P. (2015). Zimbabwe Electricity Crisis To Worsen. The Financial Gazette.
- Moyo, J. (2014). Zimbabwe’s Food Entrepreneurs Cash in On a Failing Economy. Inter Press News Agency.
- Mudariki, G. (2013). Cost of Living Rises. Newsday.
- Ndlovu, C. (2015). Depreciation of the rand: Impact on Zimbabwean businesses. Bulawayo24News.
- Ndlovu, R. (2014). KFC reopens Harare branch after seven years. Business Day Live.
- Niemann, G., & Niewenhuizen, C. (2009). Entrepreneurship: A South African Perspective. 2nd Edition. Pretoria: Van Schaik Publishers.
- Nyoni, M. (2016). Chinamasa growth projections ‘daydreaming’. The Standard.
- Nyoka, S. (2014). World Bank predicts negative growth for Zimbabwe 2016. SABC News.
- Reserve Bank of Zimbabwe (2006). Supplement 1: developmental SME projects: intervention to support youth, women, and other disadvantaged groups: supplement to the first half 2006 monetary policy review statement. Harare: RBZ.
- Sanderson, A. (2014). Renew licences, shop owners urged. The Herald.
- Sanghavi, N. (1998). Franchising as a Tool for Small Medium Sized Enterprise (SME) Development in Transitional Economies – The Case of Central European Countries. Management Research News, 21(11).
- South African Economic Outlook (AEO) (2016). Zimbabwe Economic Outlook.
- World Bank Group (2015). Doing Business Going Beyond Efficiency. Comparing Business Regulations for domestic firms in 189 Economies. A World Bank Group Flagship Report. 12th Edition. World Bank. Washington.
- ZimSitRep (2014). Zimbabwe’s Economic Environment. Robertson Economics.
- Zuze, L. (2015). Power cuts no longer a laughing matter. Newsday.